Post: #1

Any tips on finding a good buyer agent? I don't know anyone who can give me a personal recommendation. Pretty much all agents advertise that they will act either as buyer or seller agents.
I'm guessing someone who sells too fee or too many houses would not be right. (too many = too busy,too few = inexperienced.) Any other ways of screening them? When I talk to a couple of them, what questions should I ask,what answers should I look for?

Post: #2

Most agents act as both buyer and listing agents. Those that sell high volume usually have teams underneath them. Too few isn't a significant issue as real estate agents work under brokers which can guide their actions. You also don't NEED a buyer agent, you can go see separate properties and purchase them without an agent. PM me if you want more info, as I am a realtor.

Post: #3

(08-08-2016 11:56 AM)TheFinalEpic Wrote:  Most agents act as both buyer and listing agents. Those that sell high volume usually have teams underneath them. Too few isn't a significant issue as real estate agents work under brokers which can guide their actions. You also don't NEED a buyer agent, you can go see separate properties and purchase them without an agent. PM me if you want more info, as I am a realtor.

You forgot the Trademark symbol in REALTOR®. Your board president will be very upset.

Post: #4

As I understand it, a buyer's agent STILL represents the interests of the seller to some degree. I know, the concept is supposed to be that they only represent your interests as a buyer, but here is a test - get a buyer's agent and ask them "what is the worst thing about property x with respect to my needs" and they will never say a bad word.

I've bought and sold a handful of single family homes, and will always do "for sale by owner". There are probably good agents out there, but I've never met any, just a bunch of dishonest sleazeballs in my experience.

It's not rocket science, with zillow and google you have just as much info as the agents. Well worth your time!

Post: #5

It's true that every buyer agent's hope is they will not have to spend too much time with you before you make a purchase and they get their commission. Time=Money=Freedom

I think the best buyer's agent is someone who has access to properties that aren't for sale yet. This gives you first dibs on buying them and that's important in a tight market area. That kind of realtor will be well connected in the community in some way. Could be a 30+year experienced realtor, or someone with much less experience but has serious connections (From their family, spouse, friends, other profession, etc). If the realtor lives and owns in the area you are looking that is even better.

Keep in mind that you "must" know the value of a property yourself and whether it's over-priced and a good investment. No one will help you with that.

Edit: Also, if you want a shot at a really good deal, write up a flyer or postcard saying you are a solid buyer and interested in purchasing a home in the area and if they would like to sell to contact you. You can put these directly in the mailboxes yourself or pay for some kind of USPS delivery to a zipcode area. It works! I spent several days doing this, and while it was a lot of work I got two very solid opportunities at houses the owners would've sold at below market. Significantly so.

Post: #6

(08-10-2016 08:46 AM)Engineer Wrote:  As I understand it, a buyer's agent STILL represents the interests of the seller to some degree. I know, the concept is supposed to be that they only represent your interests as a buyer, but here is a test - get a buyer's agent and ask them "what is the worst thing about property x with respect to my needs" and they will never say a bad word.

I've bought and sold a handful of single family homes, and will always do "for sale by owner". There are probably good agents out there, but I've never met any, just a bunch of dishonest sleazeballs in my experience.

It's not rocket science, with zillow and google you have just as much info as the agents. Well worth your time!

Most times, listing agents will beat around the bush if there is something wrong with a property, and your agent owes you a fiduciary duty to work in your interests. You also won't have access to private remarks with regards to latent defects if you are not an agent, and this can be a large issue if there are foundational cracks or hidden defects that will cost you an arm and a leg to fix.

edit: in regards to Zillow and Trulia, most times, the home value will also be out to lunch.

Post: #7

Super helpful e-book I read when I started looking at real estate, I could not recommend it enough.

How To Not Get Screwed By Your Real Estate Agent

I'd put reading this book right up there with hiring a quality inspector when it comes to saving you headaches, heartaches, and financial disaster when looking at purchasing real estate.

It will walk you through what everyone's role is, who should be looking out for your interests, who won't be looking out for your interests, who is scamming you (title insurance, title insurance, title insurance), and what you need to know to protect yourself and your money as you go through the process.

Post: #8

(08-10-2016 09:31 AM)TheFinalEpic Wrote:  

(08-10-2016 08:46 AM)Engineer Wrote:  As I understand it, a buyer's agent STILL represents the interests of the seller to some degree. I know, the concept is supposed to be that they only represent your interests as a buyer, but here is a test - get a buyer's agent and ask them "what is the worst thing about property x with respect to my needs" and they will never say a bad word.

I've bought and sold a handful of single family homes, and will always do "for sale by owner". There are probably good agents out there, but I've never met any, just a bunch of dishonest sleazeballs in my experience.

It's not rocket science, with zillow and google you have just as much info as the agents. Well worth your time!

Most times, listing agents will beat around the bush if there is something wrong with a property, and your agent owes you a fiduciary duty to work in your interests. You also won't have access to private remarks with regards to latent defects if you are not an agent, and this can be a large issue if there are foundational cracks or hidden defects that will cost you an arm and a leg to fix.

edit: in regards to Zillow and Trulia, most times, the home value will also be out to lunch.

"Private remarks with regards to latent defects" - are you saying a seller's agent would make such remarks in the presence of a buyer's agent?

Zestimates may be garbage, but the site also shows last sale price, and so you can do the same thing a buyer's agent would do, researching comps. It all boils down to what you think your time is worth, and if you're willing to let someone else influence such a major purchase. Someone with an at-best questionable fiduciary duty to work in your interest.

Post: #9

They legally have to. Otherwise the buyer can sue the seller, and potentially the listing agent.

Yes sold data is important. Realtors really come into the legal side of things in aiding the transaction, we are moreso transaction facilitators than anything nowadays.

Post: #10

I don't think we ever answered OPs question, how to find a good buyer's agent. Is it possible to find one who works on a flat fee that the buyer pays? Anyone who gets a cut of the listing price is suspect in my book. I would also interview the potential buyers agent and ask for recent references.

Post: #11

Interesting concept. I think the issue with the industry is that its "always been done this way" in that the buyer agent gets half of the offered commission. The buyer technically pays for the commission over the period of their mortgage, and a seller pays upfront in that they lose that money out of their sale price to commissions. What buyers don't realize (in this instant gratification culture of ours) is that they do in fact, end up paying; just in the long term vs. short term.

Really as a buyer agent, all we do it provide you with the resources (i.e. take your criteria and build a search), then let you in the home, and when you want to buy, we do the paperwork, negotiate with you, and do the conveyancing with lawyers and mortgage brokers. I can't make anyone buy a home they don't want to buy, but I can advise them on what the market is saying, what may be off about a particular home, and how they can build potential issues into a negotiation.

I've recently been working more with investors that are about the numbers and potential profits. I got sick of working with people that take everything emotionally very quickly.

Post: #12

(08-10-2016 09:31 AM)TheFinalEpic Wrote:  

(08-10-2016 08:46 AM)Engineer Wrote:  As I understand it, a buyer's agent STILL represents the interests of the seller to some degree. I know, the concept is supposed to be that they only represent your interests as a buyer, but here is a test - get a buyer's agent and ask them "what is the worst thing about property x with respect to my needs" and they will never say a bad word.

I've bought and sold a handful of single family homes, and will always do "for sale by owner". There are probably good agents out there, but I've never met any, just a bunch of dishonest sleazeballs in my experience.

It's not rocket science, with zillow and google you have just as much info as the agents. Well worth your time!

Most times, listing agents will beat around the bush if there is something wrong with a property, and your agent owes you a fiduciary duty to work in your interests. You also won't have access to private remarks with regards to latent defects if you are not an agent, and this can be a large issue if there are foundational cracks or hidden defects that will cost you an arm and a leg to fix.

edit: in regards to Zillow and Trulia, most times, the home value will also be out to lunch.

"Private remarks with regards to latent defects" - are you saying a seller's agent would make such remarks in the presence of a buyer's agent?

Zestimates may be garbage, but the site also shows last sale price, and so you can do the same thing a buyer's agent would do, researching comps. It all boils down to what you think your time is worth, and if you're willing to let someone else influence such a major purchase.

Post: #13

(08-11-2016 08:29 AM)Engineer Wrote:  I don't think we ever answered OPs question, how to find a good buyer's agent. Is it possible to find one who works on a flat fee that the buyer pays? Anyone who gets a cut of the listing price is suspect in my book. I would also interview the potential buyers agent and ask for recent references.

What's the benefit you get from paying a flat fee vs a commission? Their commission on a $300k vs $400k house is negligible after all the cutting and 1% or so of 300k is better than 0.

The way I see it, either way the the agent wants to sell you a house as quickly as possible so his time is free for other sales.

It's like a waiter having only 4 tables in a busy restaurant. He wants turnover so he can serve as many new customers (tips) as possible in a given time-frame. No waiter wants a squatter who monopolizes the table.

However a good realtor who is in it for the long haul really wants to build a customer base and reputation. He wants you to be happy so you use him again when you get divorced and need to sell, or to recommend to your friends, etc.

I think the good ones look at it that way anyhow. How do you know who's good and who's not? The only way I think is to interact with them. When you interact with many different agents you get to see who's good and who's not. When you come across a good one, they stand out and those kind of realtors know their worth too.

Also I forgot to mention how valuable it is to find a realtor who's knowledgeable about construction, renovation and maintenance.

Like any business dealing it helps to win over your realtor, make him like you and want to work for you, to want to look out for your best interests.

They will always be thinking of their own of course, but if you get them to like you enough they will give you hints here and there about whether you should buy something or pass. You just have to listen for them.

That's my approach to it anyways.

Post: #14

Go to http://www.biggerpockets.com
Create and account and then you will be able to connect with all types of real estate professionals in the area that you live. Read up on the background info of some of the people that you connect with and hopefully you will be able to create a lasting partnership. Hopefully this helps you out. Good luck

Post: #15

Also, if you are looking to buy properties when you sign up with bigger pockets search for wholesalers in your area. Wholesalers are people who find off market real estate for way below market value and quickly sell to a buyer for a price higher than what they got it for. Sometimes wholesalers are better than buyers agents because of how cheap they find real estate.